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Given the following Quantity Discount Schedule Discount Number Discount quantity Discount % Discount cost ($) 1 0 to 199 0 55 2 200 to 499
Given the following Quantity Discount Schedule
Discount Number | Discount quantity | Discount % | Discount cost ($) |
1 | 0 to 199 | 0 | 55 |
2 | 200 to 499 | 3 | To be completed |
3 | 500 to 999 | 4% | To be completed |
4 | 1000 or more | 4.5% | To be completed |
If the normal cost per unit is $ 55, the ordering cost per order is $82; the annual demand is 4000 units, and the holding cost is 55% of the cost per unit. What order quantity will minimize the total inventory cost? Please show all work. Please show you calculations manually.
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